Jefferies analyst David Katz reiterated a Buy rating on Park Hotels & Resorts (PK – Research Report) on February 22 and set a price target of $19.00.
David Katz has given his Buy rating due to a combination of factors that suggest a positive outlook for Park Hotels & Resorts. The company’s renovated assets are performing well, and there is a promising long-term opportunity at the Royal Palm project. Additionally, the management’s commitment to selling non-core assets is seen as a strategic move that could enhance the company’s financial position.
Despite some near-term challenges such as labor costs and renovation disruptions, Katz believes that the company’s financial metrics, including a current EBITDA level of 8.2X, present a rewarding opportunity for long-term investors. The company’s recent financial results exceeded expectations, with revenues and adjusted EBITDA surpassing both Jefferies’ and the Street’s estimates. These factors, along with the company’s strategic capital allocation and potential earnings upside, underpin Katz’s Buy recommendation.
Katz covers the Consumer Cyclical sector, focusing on stocks such as MGM Resorts, DraftKings, and Gambling.com. According to TipRanks, Katz has an average return of 9.0% and a 46.74% success rate on recommended stocks.